Premier Investments has released its FY19 financial results, reporting a record global sales increase of 7.5% to $1.27 billion.
Apparel brands performed well for the business, with total sales up 6.9% and like for like (LFL) sales up 7.8% due to the closure of unprofitable stores.
The Peter Alexander business was highlighted as a particularly strong performer, delivering sales of $247.8 million.
Peter Alexander's 2020 Growth Plan has been delivered ahead of schedule, with Premier announcing a new plan for continued growth via the opening of 20-30 new stores over the next two years.
Premier is also set to deliver material expansion of Peter Alexander online-only options in the children's and P.A. Plus categories to drive growth online.
Meanwhile, Premier's online channel also delivered record sales of $148.2 million – an increase of 31.7% – taking the channel's contribution to overall sales to 13.4%. It surpassed its target of $100 million in online sales two years ahead of schedule, with Premier set to continue investing into the channel to support the growing channel.
The business' underlying net profit before tax was $177.6 million, while the underlying earnings before interest and tax (EBIT) were $167.3 million, up 11.5% on underlying FY18.
Premier chairman Solomon Lew said that while the business' competitors may be experiencing challenging times, Premier is delivering for its shareholders.
"The Premier team continues to deliver outstanding returns for shareholders. We have clear growth strategies in place for each brand – which the team executes on relentlessly, refines continuously and measures fastidiously.
"Capital continues to be invested in growth opportunities with great discipline.
"In 2019, the Premier portfolio outperformed with strong growth in all our apparel brands, continued Online sales growth ahead of market, record Smiggle global sales and record Peter Alexander sales.
"Our cashflow remains strong and while many of our competitors are failing or struggling in these very challenging times, my fellow Directors and I are pleased to be in a position to reward the confidence of our shareholders with a record final dividend of 37 cps, taking full year dividends to 70 cps, fully franked and up 12.9%," he said.
Premier CEO Mark Mcinnes echoed Lew's comments.
"Premier Retail’s record full year results reflect the relentless delivery of key strategies identified by the experienced Board and Management team of Premier. These key strategies aim to continue to deliver strong returns into the future.
"Our Online division delivered sales for the year of $148.2 million, representing 13.4% of the respective markets’ sales.
"We will continue to invest in this channel to maintain a leadership position. Online continues to deliver EBIT margin significantly higher than the group average.
"Our apparel brands for the year also delivered exceptionally strong results, with sales growth of 6.9% – well ahead of the market.
"Our like-for-like sales growth was even stronger at 7.8% as we continued to close unprofitable stores due to unrealistic landlord rents.
"The group has closed a further 35 stores over the past 12 months and has closed 138 stores over the last seven years," he said.
While the apparel brands delivered strong results for Premier, its children's stationery brand Smiggle was also recognised as a top performer after the business began to deliver its Accelerated Growth Strategy for the business.
"Recognising the changing nature of global retail, in September 2018 Smiggle announced its Accelerated Global Growth Strategy," McInnes said.
"The strategy is being successfully delivered with performance to date far exceeding our expectations.
"Smiggle has now successfully launched its new wholesale channel in seven new countries and in 180 doors.
"The wholesale orders taken to date have the potential to deliver between A$35 million and $45 million in retail sales to consumers in 1H20.
"These retail sales alone would represent 20%-25% sales growth on Smiggle’s 1H19 actual global retail sales.
"The brand sees the potential to grow with these existing seven partners to over 350 doors within the next 12 to 24 months. In addition, advanced discussions are also underway with new iconic partners in new markets.
"Smiggle’s online growth, both from our proprietary websites and third-party websites, has also far exceeded our expectations.
"Smiggle concession partnerships with iconic global retailers continue to accelerate whilst the brand’s new store growth is to plan," he said.
Smiggle delivered global sales of $306.5 million.